IMPACTINVESTING
A Growth Market ! $3.07 trillion U.S. market with 13.3% growth while traditional asset managers remained flat ! $6.5 trillion in Europe ! estimates as high as $1 trillion for new money over next decade
Responsible Growth
What is ESG? ! Environmental ! Social ! Governance
Institutional Focus ! calPERS & calSTERS will incorporate ESG into all investments ! fiduciaries could be considered negligent if they fail to acknowledge ESG risks
SRI vs Impact Investing ! Socially Responsible Investing(SRI)- historically achieved through negative screening - a do no harm passive approach ! Impact investing- a proactive process to create positive change while still earning a return
Why Not? ! misperceived market- assumption that performance would be sacrificed for personal values ! multiple approaches producing wide array of results
! Oldest and largest independent investment advisor devoted exclusively to sustainable and responsible investing ! incubator of ! Pioneer in use of direct community investments
Investment Discipline ! Equity style is GARP- growth at a reasonable price ! ESG analysis integrated in the process ! No „perfect‰ companies, but seeking the best in class
Trillium features ! Equity, balanced and fixed income portfolios ! Long record of competitive returns ! Integrated ESG analysis ! Highly experienced Research and shareholder advocacy team ! Innovative sustainability strategies
Positive Environmental & Social Impact
Multiple Approaches Maximize Impact + Public Policy Advocacy Community Investing
Community Investing
Corporate Engagement
Corporate Engagement
Corporate Engagement
Portfolio Screening
Portfolio Screening
Portfolio Screening
Portfolio Screening Passive Strategy . . . . . . . .
. . . . . . . . Trillium Approach
Advocacy ! address social and environmental issues through legal rights and power of ownership ! constant communication with corporate officials ! if dialogue fails- filing of shareholder proposal
Community Investing ! high social impact ! provides capital to communities underserved by traditional financial services ! insured market rate CDs and or uninsured notes fund ! can be directed based on client specific interest
Four Strategies ! Large Cap Core ! Small/mid Cap Core ! All Cap Core ! Sustainable Opportunities
ESG as a Risk Mitigator ! reputational risk- especially dangerous in this era of viral communication ! addressing sustainability issues in preemptive manner ! early detection of executive malfeasance ! sustainable solutions will be key drivers of industrial and economic development
Start the Conversation 90% of investment consultants believe that ESG is a growth area but only 22% proactively discussing it
Doing good, while doing well (who doesn’t want that?)
! philanthropic efforts can be intensified with impact investing ! women are especially focused on investing with a greater purpose ! non-profits and foundations ! aligning values with portfolios
Be Ahead of the Curve ! Increased institutional focus ! Mainstream media attention ! NGO mandates